These were also dangerous and violent times as well....and as such, transporting large amounts of money was dangerous...and difficult.

Due to the sheer weight of these precious metal coins, carrying a large amount would make you a slow and easy target for marauders and bandits.

A solution was needed.

Back then the only people who could build safes to store this money were the local village blacksmiths. They were the only ones who could construct
storage containers and locks from heavy steel to safely protect large sums of money.

The villagers who needed to store a large amount of money would go to the blacksmith, give him the money to be placed in a safe, and were given a
piece of paper called a NOTE with the amount of money written on it.

This allowed the villagers to transport large sums of money safely, and make large purchases without fear of being robbed.

For example: If you wanted to buy a house, you would go to the seller, give him this paper, called a NOTE, and the seller would then take the NOTE to
the blacksmith and redeem the amount of money owed to him.

Sounds reasonable right?

As time went on, the blacksmiths began to lend money out as well in the form of loans.

Now somewhere alone the line the blacksmiths realized they could create NOTES, WITHOUT HAVING THE MONEY IN THE VAULT to back up the NOTE.

They simply drew up a note for a loan, and then collected the interest on the loan. The repayment of the loan plus the interest WAS THE ONLY REAL
EXCHANGE OF ACTUAL MONEY TAKING PLACE...

Eventually this became easier as everyone had a home loan, the seller of a house would come in to redeem a note given to him by a buyer, and because
the seller had his own note he was paying off, the blacksmith would simply take his pen out and zero out the debt owed by the seller on his own
"note", therefore reducing the need for the blacksmith or bank to pay out ACTUAL CASH.

Many historians agree the system was begun in ernest by the Knights Templar.

Devised deposits and retrievals of same over long distances to keep travelers from being robbed on long journeys. They also devised coded accounting
to protect those deposits. One would then present the coded "withdrawal-slip" upon reaching their destination to retrieve their funds.

Many historians agree the system was begun in ernest by the Knights Templar.

Devised deposits and retrievals of same over long distances to keep travelers from being robbed on long journeys. They also devised coded accounting
to protect those deposits. One would then present the coded "withdrawal-slip" upon reaching their destination to retrieve their funds.

Far and away considerd the 1st "bankers".

And what if that slip or note could be created without any money backing it up?

I believe it was the Templars who created the first lines of money trading, because the Christian church was funding wars in faraway lands, instead of
transporting gold and precious stones to fund the wars, the Templars eventually held riches in both sides of the war zones, so they would take issue
notes on one side, while exchanging gold, etc., on the other.

But there are probably many instances of the modern banking system being developed. The major shift though, in modern times, which is different from
all of history is the fiat currencies and the high rates given to banks via fractional lending. That all started when the Fed was created.

Congratulations on your realization. I figured this out a long time ago.
At first I was horrified and began to perceive money as disgusting.
Unfortunately, this is where we are.
Money, as ugly as it is, really can buy happiness.
I would love to have more.

originally posted by: skunkape23
Congratulations on your realization. I figured this out a long time ago.
At first I was horrified and began to perceive money as disgusting.
Unfortunately, this is where we are.
Money, as ugly as it is, really can buy happiness.
I would love to have more.

Id put it like the rapper fabolous says..."money cant buy happiness but its a damn good down payment"

The Islamic practise was to have two business people with loads of cash. Neither wished to transport the money across long distances, so they just
received deposits of cash plus a fee, and sent across a signed certificate along with a seal of authenticity. That was how Foreign-Exchange markets
began.

Then there was farmers insurance. Some years they could have a good harvest, other years a bad one. So they clubbed together to form a cooperative,
pay an annual insurance fee, and if there was a bad harvest, they would be paid compensation. That formed the basis of futures, derivatives and other
markets.

Merchant banking sponsored ventures like merchant boats going across the Mediterranean, buying export products and selling them locally for a profit.

And what if that slip or note could be created without any money backing it up?

If you think about it, that wouldn't be in the Templar's best interests. The Templar's seemed to have a very sophisticated, un-crackable code. To
the best of my knowledge, it hasn't been deciphered to this day. I have a sneaky suspicion that the Vonyich manuscript is a form of Templar code.

Instead, the Templars would profit when the person died or lost their note. They would keep whatever they were storing for the person.

And what if that slip or note could be created without any money backing it up?

If you think about it, that wouldn't be in the Templar's best interests. The Templar's seemed to have a very sophisticated, un-crackable code. To
the best of my knowledge, it hasn't been deciphered to this day. I have a sneaky suspicion that the Vonyich manuscript is a form of Templar code.

Instead, the Templars would profit when the person died or lost their note. They would keep whatever they were storing for the person.

Yea I dont think the Templars were the first...I think the story in the OP goes back much further...

Agreed. The Templars didn't start their banking system until after they found something while digging around Jerusalem. A decade later, they are
richer than most kindoms. Question is, what did they find and who left it there?

Banking systems have been in place for thousands of years before christ, the Egyptians, Romans and Chinese had fairly complex banking systems for the
time with facilities to lend money etc. Accounting ledgers have also been discovered that can be traced as far back as 8,000 b.c.

The Code of Hammurabi, nearly 4,000 years old even discusses banking regulations.

The Templars I suppose were just one of the first groups who began putting the pieces of civilization back together after the collapse of the Roman
Empire.

Banking as a concept is not evil. As a means to safely transfer money between individuals over long distances, the advent of modern banking improved
trade and not only benefitted people economically, but with improved and more trade, there came exchange of ideas and cultures. Without banking there
would have been no renaissance.

Money is neither good nor evil, it is just a means of exchange and is more efficient than the old barter system.

Loans are beneficial in that they can provide someone with the necessary means to expand his business and increase his ability to provide his goods
and services.

Don't confuse concepts that can be beneficial and have been shown to be beneficial with the bad actions and dishonesty of various individuals and
groups.

Agreed. The Templars didn't start their banking system until after they found something while digging around Jerusalem. A decade later, they are
richer than most kindoms. Question is, what did they find and who left it there?

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